Oil Prices Rise on Report of US Crude Stock Draw

Singapore, – Oil prices rose in early trading on Wednesday after a report that US fuel inventories may have fallen for a fifth straight week, but contracts remained near the $50 marker where many traders currently see fair value for crude.

US West Texas Intermediate (WTI) crude futures were trading at $49.22 per barrel at 0649 GMT, up 53 cents, or 1.1%, from their last settlement. In international oil markets, benchmark Brent crude was trading at $51.38 per barrel, up 51 cents, or 1.0%.

Traders said the higher prices were largely a result of a report by the American Petroleum Institute (API) late on Tuesday showing that US crude inventories likely fell for a fifth straight week, declining by 7.6 million barrels.

The US government’s Energy Information Administration (EIA) will report official stockpile numbers later on Wednesday, although analysts expect the EIA to report a stock build of 2.6 million barrels for the week ended September 30.

Source: Qatar News Agency